Disadvantage
1. Time Consuming
2. Not Quantifiable
3. Inefficient
4. Frustration from not knowing the right answers in forced choice

ACA 2 - Relative standards

Employees are evaluated by comparing their performance to the performance of other employees.

Advantages
1. Prevents rater from inflating their evaluations so that everyone looks good or average. 2. Each employee is evaluated against their co-employees.

Disadvantage
1. If in small population, raters tend to evaluate even an excellent employee as last place. 2. Difficult to accomplish if the employees are too many.

ACA 3

Using Achieved Outcomes to Evaluate Employees: Formal approach is Management by Objectives (MBO) which is a performance appraisal method that includes mutual objective setting and evaluation based on the attainment of the specific objectives.

Advantages 1. Advantages are that it uses a results-oriented emphasis. It assists the planning and control functions and provides motivation. Employees know exactly what is expected of them and should have a greater commitment to goals that are mutually set.

Disadvantage

1. Disadvantages are that it will not work well where management has little trust in its employees. The MBO process is time-consuming. Finally, it may be difficult to measure whether the MBO activities are being carried out properly.

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